GST on Transportation Services - Navigating through turbulent waters
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GST on services by way of transportation of goods by aircraft/vessel is certainly on a roller-coaster ride these days. The story began in September 2022, when certain exemption entries pertaining to goods transportation services witnessed a sunset from 1 October 2022 onwards. This resulted in taxing the transportation of export cargo by the Indian transporters/freight forwarders, liable to Integrated GST (IGST), which generated a buzz amongst the exporters as well as the Indian transporters/freight forwarders. Consequently, owing to the hardships, various associations and trade bodies filed representations before the government against the withdrawal of GST exemption.